DMEA signs 12.5-year wholesale power supply partnership with Guzman Energy
MONTROSE: Delta-Montrose Electric Association (DMEA) Board of Directors announced a new 12.5-year wholesale power supply partnership with Denver-based Guzman Energy. In addition, the parties launched a joint effort to immediately begin developing at least 10 megawatts of new solar generation projects in the Delta-Montrose territory. This joint development is in addition to significantly expanded local generation opportunities for DMEA over the next 12.5 years. “Our partnership with Guzman aims to ensure DMEA remains a competitive, reliable, and cost-effective co-op in the years to come,” said Jasen Bronec, DMEA’s Chief Executive Officer. “This power supply agreement better positions DMEA to maintain stabilized rates and it allows for the development of diverse and low-cost local energy,” he added. The partnership initiates an innovative model for serving communities in a rapidly changing energy landscape. The agreement emphasizes local development, something the members of DMEA have requested for years. After a hard-fought separation from its incumbent provider, DMEA is now positioned for the future and for greater energy independence. “We are elated about this transaction and partnership. Our partnership with Guzman will only strengthen our community and membership,” said Bill Patterson, DMEA’s Chairman of the Board. Guzman will begin serving DMEA later in 2020 once DMEA’s incumbent provider, Tri-State Generation and Transmission Association, obtains required approvals at the Federal Energy Regulatory Commission. Guzman Energy will be paying $62.5 million to Tri-State for the right to take over DMEA’s power supply agreement and to sell power to the co-op at a more competitive rate. In addition, DMEA is purchasing $26 million in transmission assets from Tri-State that will be used to service their members going forward. “It’s rare to have the opportunity to form an alliance that both lowers wholesale prices and creates investment opportunities within communities. We are excited to partner with DMEA on this and look forward to moving into a new era together,” said Chris Riley, CEO, Guzman Energy. By partnering with Guzman Energy, DMEA is expected to eventually bring its local generation above 20%. DMEA was capped at 5% local generation under its previous power supply agreement. “These community projects will result in cost-effective renewable energy being built and used right here in our own service territory and would not be possible without our partnership with Guzman,” added Bronec. Guzman Energy is a full-service wholesale power provider focused on providing market-based solutions to address our customers’ energy challenges by delivering reliable and affordable power.